Gold Boom in Uzbekistan

The market for investment gold in Uzbekistan is experiencing a veritable boom. In 2025, commercial banks sold a total of 661 kilograms of gold bars—more than eight times the previous annual average. Even compared to the cumulative sales from 2020 to 2024, the figure is significantly higher, according to data from the Uzbek Central Bank.

A total of 33,939 gold bars were sold—more than in the previous four years combined. Since the program’s launch in November 2020, sales have totaled around 65,000 bars with a combined weight of approximately 1.2 tons. At the same time, the buyback market remains active: banks have so far repurchased around 11,800 bars weighing just over 200 kilograms.

The dominance of small denominations is striking. Above all, 5- and 10-gram bars are driving the business. They account for the majority of trade on both the sales and buyback sides. Larger units, such as 50- or 100-gram bars, have so far played only a minor role—an indication that gold is increasingly being used as a low-threshold form of savings for broad segments of the population.

This trend has recently accelerated significantly. As recently as 2024, sales stood at 236 kilograms, already a multiple of the previous average. The jump to 661 kilograms the following year now marks a new level of demand.

A key driver is the trend in global markets. The price of gold has risen sharply in recent years, and with it the appeal of the precious metal as a hedge against uncertainty. According to the World Gold Council, global demand for gold bars and coins has risen significantly. In Uzbekistan, too, investors are increasingly turning to physical gold—not least against the backdrop of geopolitical tensions and macroeconomic risks.

Added to this is a clear yield advantage over traditional savings products. While bank deposits in local currency or U.S. dollars yield comparatively stable but moderate interest rates, gold investments have performed strongly in recent years. After losses at the start of the decade, returns rose significantly starting in 2022 and have recently reached double-digit growth rates.

However, the central bank warns against excessive expectations. Gold remains a non-interest-bearing asset whose value depends exclusively on price movements in international markets. Fluctuations can be correspondingly sharp.

The government’s gold program, launched in June 2020, laid the groundwork for the boom. It allows private individuals to buy and sell standardized gold bars directly through commercial banks. The offering has been gradually expanded, most recently to include larger denominations such as 100-gram bars.

A key factor in its success is trust in the infrastructure. The bars are issued in tamper-proof packaging, equipped with QR codes, serial numbers, and special security features. Resale is also clearly regulated: if the packaging is undamaged, payment is typically made on the same day.

At the same time, the distribution network has also expanded. More and more banks are offering gold transactions, and the number of sales outlets has multiplied nationwide. New regulatory frameworks also allow for digital solutions: through mobile apps, customers can buy, sell, or hold gold in so-called metal accounts.

These electronic accounts allow investments starting at just 0.1 grams, further lowering the barriers to entry. At the same time, the risk of physical storage is eliminated. Banks can flexibly adjust their prices to international markets, while customers can conduct transactions entirely digitally.

In 2025 alone, nearly 170 kilograms of gold worth approximately $25.7 million were held in these accounts—a further sign of the precious metal’s growing importance in the country’s financial system.

Gold also remains a strategic factor at the government level. In February, for example, Uzbekistan purchased eight tons of gold, making it one of the world’s largest buyers. The boom in the domestic market is thus part of a broader trend: gold is gaining importance in the country both as an investment vehicle for private individuals and as a component of the national financial strategy.